Social Security benefit amount confusion - $1200 at 64 vs $1800 at 62 with similar salaries?

There are several factors that could explain this difference: 1. Your neighbor's benefit amount of $1800 sounds unusually high for someone with a $40k average salary who's claiming at 62. The typical replacement rate would put them closer to $1300-1400 at Full Retirement Age, and claiming at 62 would reduce that by about 30%. 2. Years worked matters a LOT. Social Security uses your highest 35 years of earnings. If you have fewer than 35 years of work, you'll have $0 years averaged in, which significantly lowers your benefit. 3. Are you sure your neighbor is only getting retirement benefits? They might be receiving additional benefits like: - Spousal benefits on top of their own - Survivor benefits from a deceased spouse - Disability benefits (SSDI) which aren't reduced at age 62 like retirement benefits I'd recommend creating a my Social Security account at ssa.gov to see your actual projected benefit amounts at different ages.

The SS system is RIGGED against regular workers!!! I worked 40 years and my benefit is pathetic. Your neighbor is probably getting survivior benefits on top of her own which is WHY the amount is so high. The government doesn't bother explaining ANY of this clearly. They WANT us confused so we don't know what we're entitled too!!!

Wait so do we get more if our spouse dies? My husband and I are both 60 and trying to figure out when to apply. So confused about all this.

I had similar confusion about my benefit amounts. When I called SSA, I spent THREE HOURS on hold only to get disconnected! Then tried again next day, another 2 hours waiting. Finally I used Claimyr.com to get through - they called SSA and then connected me once an agent was on the line. Saved me hours of frustration! You can see how it works at https://youtu.be/Z-BRbJw3puU Once I actually talked to someone, they explained I was seeing different estimates because my earnings record had some mistakes. Worth checking your record to make sure all your earnings are correctly reported.

I'm trying to understand this too! I'm 63 and when I look at my statement it shows different amounts for different ages. Does anyone know if the estimates on the SS statement already factor in cost of living adjustments for future years? Like if it says I'll get $1450 at 67, does that include estimated COLA increases?

ur neighbor is lying about how much they get. no way they getting that much on 40k salary. people always exaggerate what they get from ss. my brother in law kept saying he was gettin 2200 but my sister told me it was really only like 1700

To summarize what several people have mentioned: 1. Your neighbor is almost certainly receiving survivor benefits from her deceased husband on top of her own retirement benefit. 2. Your 31 years of work versus the required 35 is reducing your benefit by approximately 11-13%. 3. The $5K difference in salary ($35K vs $40K) would account for about a 14% difference in benefits. Combined, these factors could easily explain a $600 difference. I strongly recommend: - Create a my Social Security account if you haven't already - Check your earnings record for accuracy (missing earnings is a common problem) - Look at your personalized benefit estimates at different claiming ages - Consider scheduling an appointment with an SSA representative to review your specific situation